The passenger aircraft, operated by Ryanair Holdings, are on the runway at London Stansted Airport in Stansted, UK, on May 1, 2020.
Chris Ratcliffe | Bloomberg | fake pictures
Ryanair posted a net loss of 185 million euros ($ 216.4 million) during the first quarter of its 2021 fiscal year, slightly better than market expectations.
Analysts surveyed by Refinitiv expected a net loss of 205 million euros for the quarter ending June 30.
The low-cost airline said Monday that its next 12 fiscal months “will be a very challenging year.” “It is impossible to predict how long the Covid-19 pandemic will persist, and a second wave of Covid-19 cases across Europe in late fall (when the annual flu season begins) is our greatest fear right now,” he said. Ryanair in a statement. statement.
The pandemic has significantly affected the sector, as the entire Ryanair fleet was halted for approximately four months as countries imposed strict blocking measures to contain the spread of the virus. Since then, economies in Europe have reopened and airlines have returned to the skies, yet social distancing measures and quarantine policies have limited some operations
The Irish firm said it expects traffic to drop 60% in 2020/2021, but the uncertainty surrounding the pandemic does not allow it to provide further guidance for the year.
Spain returns to the quarantine list
The UK government surprised many tourists over the weekend by announcing that Spain would be removed from the list of quarantine-exempt countries upon arrival in England. An increasing number of cases in certain Spanish regions triggered the decision.
However, Ryanair said it did not plan to cut flights to Spain from the United Kingdom. The firm’s chief financial officer, Neil Sorahan, told Reuters the government’s decision was “regrettable” and that “we have to be flexible enough to deal with (localized) outbreaks) as they emerge in the coming weeks and months.”
Ryanair said it expects to emerge from the economic crisis sooner than competitors due to a “much lower cost base.”
The airline has also said that during its first quarter, it cut costs by 85%, which included negotiating salary cuts with staff. Ryanair is also concerned that EU and UK negotiators are not reaching a Brexit trade deal by the end of the year.
“The challenge of Brexit, and in particular a Brexit without an agreement, remains high. We hope, before the end of the Transition Period in December, that the UK and Europe agree on a trade agreement for air travel that allows the free movement of people and the deregulated airline market between the UK and Ireland to continue, “Ryanair said.
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